Corning faces antitrust actions for its Gorilla Glass dominance

European Commission looks into alleged exclusivity, pricing, and patent demands.

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[KingKrayola]

It's my understanding that Corning's dominance is due to them having (by far) the highest performing product on the market. Over the years consumers have shunned Sapphire Crystal glass for Corning's Gorilla Glass. How do you break a "monopoly" on a superior product?

I suspect it's more that the EU are happy for them to sell a superior product but not do all the commercial shenanigans too.

IANAL but monopolies can be OK if you've been a choirboy and let others have a go, or let your customers buy elsewhere if they want to.

 

[KingKrayola]

What if Apple or Samsung willingly offered 5 years of exclusivity in exchange for lowered pricing or guaranteed supply? Would it be illegal for Corning to accept?

I’ve read that automakers, because of the complexity of their business and the breadth of their supply lines, prioritize certainty across a multiple-year timeline in their contract negotiations and regulatory lobbying. I can’t imagine that electronics manufacturing is significantly different.

I don't think offering exclusive terms as a buyer is a problem as that isn't interfering with anyone else's deals. It's when the seller demands it that it's a problem.

Supply chain management is a field in itself but multi-year contracts and options are where futures trading starts to come in, especially for limited supplies like aerospace fasteners or exotic alloys that may only be made in one batch a year.

In many cases though firms want two or three suppliers so that if one has issues (e.g. Rolls Royce engines on the 787-10) another can supply.